What is the topic you are most unhappy with yourself for missing? Mine is in corporate finance, not remembering that the ability to delay a project in the hopes of better cash flows in the future is a real option with value. I cannot believe that this did not register with me. The only option I would recognize I think is the abandonment option since it is laid out clearly in Schweser. Just curious for any similar reactions.
did not realize silver problem was cash and carry
In regards with the residual income, I forgot to exclude the interest charges. They gave us EBIT and I subtracted the taxes and forgot to take out the interest too to get to Residual Net Income.
Mine was taking the 2006 Balance Sheet Expsoure instead of using the 2007 number. I knew the answer I just didn’t look to see what year they were asking about…
Not paying better attention to the real estate formulas… I think I managed to guess some of them right but that should have been a gimme.
not studying derivatives…cough…
sbugrad89 Wrote: ------------------------------------------------------- > Mine was taking the 2006 Balance Sheet Expsoure > instead of using the 2007 number. I knew the > answer I just didn’t look to see what year they > were asking about… Yeah a friend of mine got messed up because of the way they list balance sheets. 2007 — 2006 — 2005 Instead of reading it chronologically, he read it from left to right so would think the last one was the most recent year, etc. I think it hit him on several questions they had like that.
Hi Dwight, there was a question in the Residual Income session about capitalizing lease and if we won’t capitalize, what would be the effect or something. Could you tell what that question was and possible choices if you remember? Thanks
realestate as well, could have been 6 freebies, instead i think i got 3 and had to guess, reason on the other 3…
Dwight Wrote: ------------------------------------------------------- > What is the topic you are most unhappy with > yourself for missing? > > Mine is in corporate finance, not remembering that > the ability to delay a project in the hopes of > better cash flows in the future is a real option > with value. > > I cannot believe that this did not register with > me. The only option I would recognize I think is > the abandonment option since it is laid out > clearly in Schweser. > > Just curious for any similar reactions. I completely ignored that the cost of producing that another thing was a sunk cost, as others are saying here, i chose D - to incorporate both cost & option. So mad on this. Anish
I forgot to ignore sunk cost in Corp Fin. I got confused on the swaption (pay fixed: who pays whom). I did this question 4-5 times before and got it right all the time. I blew it on the exam.
Translation Gain under All-Current Method is the same thing as Cumulative Translation Adjustment. Duh!
mine was putting 1 tail t-test and also some messups in FI…
- I figured out the arbitrage transaction for economy but I marked the wrong answer. 2. Forgot to subtract required rate of return when calculating alpha 3. Subtract cost-of-carry instead of adding it when calculating the FP 4. Confused equity risk premium with equity risk premium so couldn’t get the answer 5. Forgot to include $10 million gain for 2007 for restructuring charge so end up with -5 million instead of -15
tom18606 Wrote: ------------------------------------------------------- > Hi Dwight, there was a question in the Residual > Income session about capitalizing lease and if we > won’t capitalize, what would be the effect or > something. Could you tell what that question was > and possible choices if you remember? > > Thanks Something about capitalizing research expense? I don’t remember what it effects though sorry 
i memorize the formula for t-stat for corrleation but i forgot to read that it is 2-tail test not 1 tail
GetSetGo Wrote: ------------------------------------------------------- > I forgot to ignore sunk cost in Corp Fin. > > I got confused on the swaption (pay fixed: who > pays whom). I did this question 4-5 times before > and got it right all the time. I blew it on the > exam. Yeah they had a very similar question to the swap question on the Mock Exam 2. Same answer just differently worded question. I didn’t notice any other overlap from the mocks except for this one question.
PVGO and a couple of problems where I didn’t read the question/answers right.
chauncy99 i made the same alpha mistake i think because the req. rate was written as ten instead of 10%…i never saw it.
I am with you on the PVGO, I looked at my flashcards that morning and the PVGO card and thought, nah I won’t need that formula…if only I flipped the card over to refresh my memory.